In his 2000 Berkshire Hathaway Annual Letter, Warren Buffett warned investors about the dangers of speculation and irrational exuberance. Reflecting on the market mania of the late 1990s, he wrote: “The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants … Read More
Terry Smith: The Cornerstone of Smart Investing
In his latest interview with the RWH Podcast, renowned investor Terry Smith reinforced a principle that too many investors ignore: return on capital employed (ROCE). As legendary investor Warren Buffett stated in his 1979 annual report, ROCE is “the single most important measure of performance.” Terry Smith, one of today’s … Read More
Which Superinvestors Hold Acquirer’s Multiple Stocks?
Part of the weekly research here at The Acquirer’s Multiple features some of the top picks from our Stock Screeners and some top investors who are holding these same picks in their portfolios. Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and … Read More
Warren Buffett: Why Opportunities Abound In This Changing World
In the 2023 Berkshire Hathaway Annual Meeting, Warren Buffett argues that opportunities in investing remain abundant, driven by others making poor decisions. He reflects on how the world has changed since 1942, noting that new technologies don’t eliminate opportunities. Over the 58 years of running Berkshire Hathaway, he has observed … Read More
Apple: Buffett’s Greatest Trade?
During their recent episode, Taylor, Carlisle, and Alex Morris discussed Apple: Buffett’s Greatest Trade? Here’s an excerpt from the episode: Alex: Yeah. I think the kicker on top of that too is to your point, it was only a handful of years after IBM, which was I think it was … Read More
Warren Buffett’s Warning: Why Popular Opinion Doesn’t Equal Sound Investing
In his 1962 Buffett Partnership Letter, Warren Buffett reflects on conservative investing, cautioning against blindly following conventional methods. He notes that buying long-term bonds, once considered safe, often fails to preserve real buying power due to inflation. Similarly, he warns against overpaying for blue-chip stocks based on high price-earnings ratios, … Read More
Buffett’s PetroChina Investment
During their recent episode, Taylor, Carlisle, and Alex Morris discussed Buffett’s PetroChina Investment. Here’s an excerpt from the episode: Tobias: I remember PetroChina being– And I’d been sort of interested in Buffet and Munger for about five years by that point when PetroChina happened. And I remember it being a … Read More
Warren Buffett on Personal Accountability in Investing: The Mirror Test
In a lecture at the University of Florida, Buffett shared a simple yet powerful philosophy: “We never look back. We just figure there is so much to look forward to that there is no sense thinking of what we might have done. It just doesn’t make any difference. You can … Read More
Cliff Asness: Investors Should Avoid These Two Extremes
In this interview with the Insightful Investor, Cliff Asness discusses the challenge of evaluating an investment strategy during difficult periods. He warns against two extremes: abandoning a strategy too quickly due to short-term losses or stubbornly refusing to adapt when necessary. He highlights Warren Buffett’s ability to stick to his … Read More
Why Car Dealerships Can Be a Great Business: Insights from Warren Buffett
In this interview with Carol Loomis at Fortune MPW, Warren Buffett explains that a good business earns a high return on tangible assets, whether it grows or not. However, overpaying can turn a good business into a bad investment. He acknowledges his early mistake of buying cheap, underperforming businesses, which … Read More
Lessons from Warren Buffett: Missing Amazon and Microsoft
In this interview with Andy Serwer, Warren Buffett reflects on his admiration for Jeff Bezos and his remarkable execution of Amazon’s vision, acknowledging that he didn’t foresee its success. He admits to missing investment opportunities like Microsoft but doesn’t regret them as they were outside his circle of competence. Instead, … Read More
Warren Buffett’s Take: Investing in Industries vs. Companies
During this interview with Dr. George Athanassakos and Ivey MBA and HBA students, Warren Buffett discusses the challenges of picking individual pharmaceutical companies due to the uncertainty of future competition. He suggests that investing in a group of pharma companies, if reasonably priced, is a better approach since some drugs will … Read More
Terry Smith Explains The “Busy Fool Syndrome”
In his book – Investing for Growth, Terry Smith argues that most fund managers prioritize matching their benchmark rather than outperforming it, leading them to become “index huggers” who underperform after fees. He supports Warren Buffett and John Bogle’s view that low-cost index funds are better for most investors. Smith … Read More
Warren Buffett’s Rip Van Winkle Approach to Investing Explained
In his 1991 Berkshire Hathaway Annual Letter, Warren Buffett stresses a patient, focused investment strategy, likening the stock market to a mechanism that transfers wealth from active to patient participants. He highlights Berkshire Hathaway’s first significant international investment in Guinness, while reaffirming confidence in enduring businesses like Coca-Cola and Gillette. … Read More
Warren Buffett: Approval Is Not The Goal In Investing
In his 2008 Berkshire Hathaway Annual Letter, Warren Buffett says some people are keeping their money in the “boring place” because they feel safe. But in the long run, that’s not a smart move because the money won’t grow, and it will lose its value. Instead, he suggests thinking carefully, … Read More
Warren Buffett: The Price Of A Stock Doesn’t Tell Me Anything About A Business
In this television interview, Warren Buffett explained that most professional investors focus on short-term stock price movements rather than viewing stocks as ownership in a business. True value investing means not being concerned about whether the stock market is open tomorrow. A good investment should hold its worth even if … Read More
Warren Buffett: Find Businesses That Can Thrive With Less Ongoing Effort
During the 1995 Berkshire Hathaway Annual Meeting, Warren Buffett explained the difference between businesses that require one-time smart decisions and those needing continuous smart management. Retailing, he notes, demands constant adaptability since competitors quickly mimic successful strategies. In contrast, some businesses benefit from structural advantages, allowing them to thrive with … Read More
Warren Buffett on Knowing Your Strengths and Avoiding the Spotlight
In his 2019 Berkshire Hathaway Annual Letter, Warren Buffett reflects on his experience with corporate directors, acknowledging their decency, likability, and intelligence, though many lacked the aptitude for handling money or business matters. He humorously notes that everyone has areas of incompetence saying, if I were ever scheduled to appear … Read More
Joel Greenblatt: How Warren Buffett Simplifies Smart Investing
In this interview with Barry Ritholz: Joel Greenblatt highlights Warren Buffett’s analogy comparing investing in stocks to owning businesses. He explains that if someone sold a business, analyzed local businesses, and prudently invested in eight well-researched companies, it would be seen as sensible. However, when the same logic is applied … Read More
Warren Buffett: The Secret to Great Business Returns: Stability Over Decades
In his 1987 Berkshire Hathaway Annual Letter, Warren Buffett discussed the value of stability in businesses, arguing that severe change and exceptional returns rarely coexist. Many investors chase exotic, rapidly evolving companies, imagining future profitability while ignoring current realities. In contrast, Buffett highlights that the best returns often come from … Read More